Tuesday 9 January 2024

HOSPITALITY SECTOR IN RECESSION

Featured in this video, radio today the Hospitality sector in the UK is facing the most closures in 2024 and it is the tip of the iceberg. In my experience locally, a lot of venues haven't recovered from the lockdowns and with the cost of living crisis, many people can't afford to spend while their energy costs have gone up again. Plus there are far too many bars and especially cafes. One business that I used to frequent, no longer open for lunch, they don't even open until 4pm. They say its no longer cost-effective to provide lunch, they stopped providing lunch in 2023. 

Retail sector has shrunk, it contracted in 2023 due to the cost of living crisis. Plus a lot more people buy from charity shops and on-line. What I noticed in 2023 in charity shops, it was clear that people weren't changing their furniture and soft furnishings has much as they were in previous years. Hence, there was a lot less choice available. 

This guy gives advice on house purchasing. Mortgage rates have dropped because it is a very competitive market because the housing market is very slow. When I was looking at an area for a friend, my advice was when it is cheaper to buy than rent, it is time to buy. Also in that rural area, the local estate agents were saying that it is taking much longer to sell first buyer homes because a lot of first time buyers don't have the deposits saved up enabling them to purchase. First time buyers really require a minimum of 5-10% deposit plus legal fees. 

They also said that family homes were selling the fastest. So it is a good market for first time buyers that have saved up their deposit and fees. Especially, if you are able move to a cheaper area and you have a mortgage lined up and a secure job. There is a lack of bungalows because house builders haven't been building them. Hence, elderly people are finding it difficult to move to where they would like to move too. If there were more bungalows available for elderly people, that would free up more family homes. 

When it is cheaper to buy rather than rent, then that is a good time to buy if you have a secure job. Although for first time buyers I recommend that you buy a 2 bed has a minimum because if you do then get into financial difficulty, you have a room to rent out, until you have overcome your situation. 

Charlie says that the housing market is a falling market, and gives advice on the best way to buy in this market. I don't think prices are falling in areas where properties are a lot cheaper than elsewhere. 



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